Competency Matrix Definition, Uses, and Steps to Create One

8 of August, 2022

When it comes to explaining what is a competency matrix seems like an abstract task at first, but it is actually quite a useful tool to have in the workplace. Human resources management teams can benefit from a competency matrix as it can help them identify some core issues to address. We understand that, whether if you are a small business or in a major multinational corporation, you may still want to understand how to create a competency matrix. Keep reading this article to find out how.

What is a competency matrix?

A competency matrix, also known as a skills matrix, is an HR tool used to map the required skills for an employee or a team. It is an essential tool for HR professionals, where the grid makes it easier to visualize the required and available skills in a team. However, its overall goals are diverse. The main one however remains the visualization of what skills your team has and where it could do with more skill training or additional human resources.

Why use a competency matrix?

HR teams use competency matrices as a way to determine what skills the company can rely on within each team and each individual.

A competency matrix helps with several problems that can arise in a team-based environment. These include answering the following queries about your team :

• What skill level does my team have, both as a unit and as individuals? A competency matrix will also help identify if there is a skill gap in your organization, that needs addressing.
• Do I need to restructure my team according the skills it has at its disposal? The matrix allows you to see where you can restructure according the allocations you have made.
• Is my organization large enough for the tasks it has as its goals? For a start-up especially having the chart in front of you and knowing which employees can deliver on what skills in important.

The function of a competency matrix largely depends on the size of your company, its resources and its overarching function. Some companies or organizations, including NGOs, will have much less leg room for making wide restructuring decisions. The matrix can still be useful to them though. It allows them to understand what their capabilities are and direct their recruitment team towards addressing any critical lack of skills.

Steps in creating a competency matrix

If you are not an HR-trained person, the first step is to assign someone within HR for being responsible for creating the competency matrix. This is a task that needs to be treated with dedication. It requires a great deal of research about your own employees, strategic thinking, and Human Resources theory. If you organization has the resources, investing in a Human Resources department can help immensely.

The next steps are about the process of creating the matrix itself :

• Define what projects your organization is undertaking. This can be client-based projects, but also some of the day-to-day tasks in handling of the company.
• Outline what skills are necessary to fulfil these projects. For example, if you are in a web development company list all the programming languages you wish to have as skills amongst your entire team. You also want to factor in your HR department’s protracted skills, your middle managers and their skills and so on.
•  Conduct an assessment of your team, of each individual’s based on a scaling system. Using a 4 or 5 point scaling system ranging from no skill or experience to expert experienced and skilled is a simple safe way for coding it later.
• You then need to create the competency matrix itself. Using some project management software is always helpful, but a paint tool, chart maker, word processor are all also viable alternatives. The important thing is to make your matrix simple and clear. You should have your team members as columns and the skills as rows, with overarching tabs in the columns for each department.
• Make sure that you continuously update the competency matrix via feedback from the relevant employees.

Get going!

If you want to efficiently complete your projects, you already know that there are many digital solutions out there.

For example, with a task tracking software like Sesame HR you have multiple features that allow you to track projects easily. The best thing is that you can personalize basically anything!